Overcoming ‘Remote-Control’ Government
There’s a shell game in government that makes it nearly impossible for you and I to stop the runaway spending. Worse, it’s designed to get you to focus on a seemingly insoluble problem far away, while the real solution lies just down the street, practically in your own backyard.
Let me use the concrete example of Lehigh County, Pennsylvania, to show how this masterful diversion plays out. I’m sure it works much the same where you live. [Disclosure: I'm currently running for Lehigh County executive, which is why I'm learning about this.]
How they avoid tar and feathers
Three-quarters of the Lehigh County budget ($305 million) is “pass-through” money that comes from the state and federal governments. We send our money to Gov. Ed Rendell. He launders it, it shrinks, and then he sends it back to us with careful instructions on how we may use it. There are 67 counties in the Commonwealth of Pennsylvania that operate by the same principle. Multiply that by 3,141 counties (or parishes, etc.) nationwide and you get a sense of the scope and impact.
Lehigh County Executive Don Cunningham has increased spending by $60 million since 2006 and plans to bump it up another $7.6 million in 2010. If he had to raise local property taxes to do that, he’d still be picking tar and feathers out of his ears and armpits.
However, because $35 million of that increase came in the form of “pass through” dollars, at “no cost” (as he says) to county taxpayers, he’s hailed as a hero, a fiscal genius, and a sound business manager. The rest of the increase, by the way, came out of the county’s reserve funds at “no-cost” to local taxpayers — at least until that piggy bank is empty in 2011.
How could we let this happen?
Most folks have no idea what’s happening in their county government. Virtually no local journalists delve into the details of the budget. They’re spoon-fed talking points by elected officials. They faithfully regurgitate that PR pabulum and call it “news.”
Let’s look at the real impact of this shell game — both locally and on a broader scale.
The Commonwealth of Pennsylvania currently suffers a $3.5 billion deficit, and the federal government is broke as well. So where did Gov. Rendell get the $305 million that he’s sending to Lehigh County this year?
Answer: From your future tax increase.
The devastation of “free money”
With thousands of local politicians like Don Cunningham nationwide telling their constituents they’ve brought home “free money,” the impact on state and national spending is staggering. When we don’t pay for local services with local dollars, we simply pass the cost on to a government with broader taxing and borrowing power. In reality, the majority of local government expenditures are put on what we might call a “Capitol One Visa” — the credit card that jeopardizes the financial stability of the entire nation.
But for your own local “Don Cunningham” character, there’s no downside, no blame, no accountability. We applaud him for the very actions that will devastate and bankrupt our nation.
The inequity of getting our “fair share”
To hear them tell it, members of Congress, state legislators, county officials, and school board members are just trying to make sure their constituents get their “fair share.” Local politicians say they’re simply complying with state mandates and trying to avoid a local tax increase. And all of this has been done in the name of fairness (an idea no one may oppose), redistributing the wealth evenly over the population of the state or nation.
But there’s no equitable or rational process for divvying up the so-called “fair shares.” Instead, local projects become bargaining chips among lawmakers, pressured by lobbyists. The lobbyists represent those who stand to gain the most from the projects — the vendors and the people who want to receive free stuff from the government.
Any salesman can tell you that it’s much easier to sell to someone who’s using other people’s money to pay, especially if the other people aren’t in the room to hear the pitch.
You don’t have to compete on price. You just have to convince the customer that it will make him look good and get him reelected. Lawmakers receive an endless parade of people seeking government contracts or free services. Notably missing from the parade are the people who will pay for all of it.
The secret of remote-control government
Most local projects and programs would never happen if local officials had to convince local people to pay for them with local taxes. Here’s the secret of what I call “remote-control government.” It allows local politicians to pose for photographs, heroically handing out giant checks for programs and projects with “no cost” to local taxpayers.
There’s no chance that the right projects and programs will get done for the right reasons. There’s no chance that any of it will be done in a fiscally responsible manner.
We have created a profession — politics — in which the professionals acquire and maintain power and wealth through their ability to “bring home the bacon” for their constituents, whom they view as ignorant and helpless.
The politician’s self-interest drives him to secure ever-increasing revenue (higher taxes) to ensure he has ever-increasing power to advance his career through bargaining with colleagues to bring home more bacon to his district.
Politicians must think we can’t figure out that the money they’re bringing home comes from our wallets, passes through a series of middlemen who all take their cut, returns to us greatly diminished, and gets used for purposes beyond our control. In addition, most of the spending goes to programs that are demonstrable failures or for which no success benchmark exists.
In this way, the locus of accountability has been moved so far away from your home that you have virtually no say in how your money is spent. That’s remote-control government. Your county government has little control over what happens locally. Its autonomy and your liberty have been traded away in exchange for the perpetual political incumbency that comes from handing out giant checks from afar.
Enough is enough!
Of course, this shell game wasn’t born yesterday. Our nation was forged in revolution when the colonists said “enough is enough” to a remote ruler who taxed them while giving them no say in how their money was spent:
But when a long train of abuses and usurpations, pursuing invariably the same Object evinces a design to reduce them under absolute Despotism, it is their right, it is their duty, to throw off such Government, and to provide new Guards for their future security.
Those today who would have you sit down and shut up will argue that we have not been reduced under “absolute Despotism.” You’re not being shot in the streets by government troops or jailed for expressing free speech. No, today’s abuses and usurpations are far more subtle, and the abusers and usurpers far more clever.
These velvet despots murmur sweet nothings in your ear, like Delilah wooing Samson, and as you slumber they quietly cut off the source of your power. When you finally wake up, you find yourself chained to a turnstile, working for them.
It’s time to “throw off” such government, and to provide new guards for our future security. I’m not talking about armed revolt. As the new usurpers rule without employing physical force, so the new revolutionaries rebel without shouldering firearms.
Where to focus your energy
Here’s the counter-intuitive part. Even though the most massive spending gets authorized in Washington D.C., that’s not where we should focus our most vigorous efforts.
Believe it or not, it’s in the best interest of the usurper to keep our outrage focused on Capitol Hill or on the White House, because we can have little impact there. We can try to prune the branches, but they’ll just grow back and spawn more bitter fruit. We need to start with the root system.
Go to your county government website today and download the budget. If it’s not there, call and request a copy. (Be careful. When I called, they offered to sell me one for 25-cents per page — 897 pages = $224.25. If they have a PDF version, they must provide it at a nominal fee or free.) Recruit some friends who understand how to run a business and comb through that document together. Gather over dessert and have fun with this. Get the children involved. Create a local blog and post your findings. Send letters to the local media about it. Write to your county leaders requesting answers to the questions your study has raised.
Demand documentation on the actual results of government human services spending. Work with others in the community to find local solutions for local needs and to restore individual liberty and accountability.
Tell your county leaders to stop soliciting remote funding for ongoing local programs. When they pose for photos handing over giant checks, you show up and present them with a giant withdrawal slip, symbolizing our intention to take our money back from remote-control government.
Focus on maximum impact
Pay attention to what’s happening in Washington, D.C., and your state capital, but don’t get distracted from your mission. Focus on the place where you can have the most impact.
We must let our local government officials know that we’re wise to the shell game and that there is no free lunch.
If they don’t get the message, throw them out of office and elect citizens who will restore common sense to government. (Hint: They won’t get the message. You may as well start by throwing them out.)
Finally, don’t rule out the possibility that the “common sense citizen” who should step up and run for local office might just be … you.
Federal and state finances have been converted into a Commons, and any locality that acts responsibly is foolish. The money will not be saved; it will simply go to others. Over-grazing, over-fishing, and over-spending are all part of the same family.
Mr Ott, this should be required reading in every high school across America. Thank you.
This sounds a lot like the old lefty mantra of “think globally, act locally.” It does, however, work.
Repeal the 16th amendment. Add another amendment that requires the congress to assess the respective state legislatures for their share of the federal budget, in accordance with population. Also, require a balanced budget in peacetime.
Repeal the 17th amendment.
That’ll fix their little red wagon.
Seriously, I’m coming around to the view that Wilson was the worst president (worse than FDR or Carter, though the jury’s still out on the current one), and the ’10s were worse than the ’30s or ’60s. Those two amendments, in particular, were really, really bad medicine.
Good luck, Mr. Ott. I lived in the valley for years and if you could get in there give the place some adult supervision it would be a great thing. Allentown used to be a fantastic place to live. When I left it felt like a free-fire zone. You should share the police retirement pay story as an example of how funds get used poorly there. Not even the cops give a hoot about the valley’s future. Sucks
Agreed, the 16th and 17th Amendments are the progenitors of our national slow-motion car wreck.
People are far less free than they were 100 years ago, and they have no clue that this is so.
#4 Calvin Ball:
Repeal the 16th amendment. Add another amendment that requires the congress to assess the respective state legislatures for their share of the federal budget, in accordance with population. Also, require a balanced budget in peacetime.
Repeal the 17th amendment.
That’ll fix their little red wagon.
Attaboy! I totally agree. The only correction may be that no amendment is necessary to require that congress assesses the respective legislatures for their share of the federal budget. Article I, Section 9 of the US Constitution states in part “No capitation, or other direct, Tax shall be laid, unless in Proportion to the Census or Enumeration herein before directed to be taken.” Each state was to be taxed in proportion to its population. Of course, with what passes for education in America today, we may need that amendment to spell it out for our government.
One other amendment I would like to see is one requiring all judges and Supreme Court justices to rule in accordance with the original intent of the constitution.
Our founding fathers wisely put a layer of protection between the people and the federal government. They knew that the states collectively could oppose the tyranny of a runaway federal government better than individual people. Thus the states were taxed and not individuals. Every amendment prior to the Civil War limited the power of the federal government. Every amendment after that increased the government’s power. We must reverse that trend or our republic will perish.
Eight comments.
The literal end of the Republic comes by way of fraudulent monetary and fiscal policy and it’s not only newsworthy, we’re not even interested in investigating it further.
Thanks, Scott. At least a few weren’t silent.
Excuse me, not newsworthy.
#8, I`m all for age limits in SC justices. Perhaps 80 is a good age to retire as a justice. You can`t tell me an 89 year old Justice Stevens is putting in a vigorous 8-10 hour day reviewing cases. Ain`t happening.
I understand Sen Byrd is 90 and probably does little to nothing but at least the people of WV can vote him out. We can`t vote out old geezers like Stevens and Ginsburg……
Good article. Good information. And it is important that we make our views heard. Thanks.
Go shopping.
The literal end of the Republic comes by way of fraudulent monetary and fiscal policy and it’s not only newsworthy, we’re not even interested in investigating it further.
I’ve been watching this comment section to see if it came to life, but I think you’re right. It’s not much of a topic since it only cuts to the heart of the matter and explains the sorry morons in Congress who use their seniority to drag home “freebies” for their districts. It also recommends that people DO something rather than enjoying the venting and then going home.
I commented on just this sort of thing elsewhere and man, you should have seen the people who got ticked off. All I said was that even those posting and yelling were mostly too lazy to govern themselves and should stop complaining. Almost all of the replies assured me that yelling at someone every decade or so was more than ample involvement by a citizen, thank you very much, and how dare I tell them to do anything other than pay their taxes and bitch.
Regards
The at least metaphorical reality of Original Sin is alive and well on planet Earth. People who normally vote for the “freebies” promised by Democrats and so-called moderate Republicans, often on minimally a gut level, realize it is pure bovine excrement. Alas, people often prefer lying to themselves. In back of their mind—they know the stuff will eventually hit the fan. They just hope the explosion will occur after their death. Years ago I heard the joke declaring that voters cast their ballots for the Democrats when they want to get something for nothing. They later switch back to responsible Republicans to get things back under control. Unfortunately, this time the problem will not be easily solved. We are in deep doo-doo.
Forwarded the article to everyone I know, including a few T.E.A. Party activists.
For example, if you can’t make it to D.C. on the 12th, you can show up at a mayor’s office, city council or county commissioner/council office near you. …and don’t forget your state legislators and governors.
Call a few friends and ask them to tag along with ya. Go for coffee and pie before and after. Have fun.
There’s another side to this. Taxes go up continuously, regardless of whether the rest of the economy is doing well or poorly. The fun starts when the government runs out of money. As long as the economy generates enough tax dollars for the government to expand, the Governor or local leaders (mayors and so forth) create new commissions, boards, and so forth, and hire more consultants. When the budget gets stretched and we haven’t got enough money to employ everyone, who gets cut? Those boards and commission members? Don’t be silly, they’re essential. Instead, here in California, believe it or not we’re laying off *FIREFIGHTERS*. Remember, they don’t have much money or political power, and they’re not a particularly big or noisy pressure group. This bait and switch tactic–hire non-essential people who will be grateful to you when things are good, and then lay off essential people when things are bad–is a basic tactic of government that allows it to grow exponentially, regardless of what else is going on. Believe it or not, when our school system out here gets in trouble, they *have* to lay off teachers. The local SEIU has a clause in their contract saying they’ll be laid off last, after everyone else.
Excellent text book analysis of the the Repulic’s self-destruction.
It took two centuries and it won’t be undone in less, meaning it won’t be undone.
David Thompson: “responsible Republicans”? Where are they, on your country club’s membership committee?
Excellent textbook analysis.
But what took two centuries to do won’t be undone — ever.
David Thompson: “responsible Republicans”?
—-where are they, on the country club membership committee?
Don’t continue the nonsense about the GOP. They are worse than the club swinging union goons of the Democrats because they don’t even wave a wet noodle.
Thanks, Scott, for highlighting the shell game.
Yes, indeed, repeal the 16th and 17th Amendments. But how do we get from here to there? The state sovereignty, 10th Amendment movement. But don’t expect a walk in the park. To get their power back the states are going to have to take it. Expect some serious pushing and shoving before it’s all over.
If you are not willing to support your state in things like Nullification, and passing laws to have all withholding sent to the state treasurer, who will then pass on to the feds the amount actually commensurate with their true, enumerated powers, then quitcherbitchin. It may reach the point where the state National Guard, or a new militia created just for this purpose, has to confront the feds. If we reach this point, I expect many active duty officers and NCOs to transfer to the state militia.
Sure it sounds apocalyptic. But think it through. If there’s another route that will actually deliver what’s necessary, I haven’t found it. If we don’t restore the Constitutional balance, and rein in the activist courts, our country and Constitution will be irretrievably lost.
Thank you, Mr. Ott. I believe you deserve to be elected. We already have a burgeoning insurgency at the citizen’s level. This needs to be relayed up the chain by insurgent politicians, truly representing the electorate. The same applies to the higher echelons of course.
The shell game is by now a well established mechanism, lubricated by for the comfort of routine. The last 30 years or so have been extraordinarily prosperous. Think about it: 30 years ago, you did not need any effort to see a rusty car. Now all you can see is good looking cars all over the place.
Sorry to say, but fiscal irresponsibility will eventually lead to hard times, and perhaps we will drive rusty cars again because the shell game eventually collides with reality. This is the prospect that animates the tea parties.
We already heard the WH chief of staff declare “you don’t let a crisis go to waste”, but that pronouncement was only reflecting the cynicism of those who are anxious to push american somnolence into american paralysis.
Giants have been awakened before. Let’s keep our eye on the prize. Freedom is not for sale.
Bravo. It is time for us all to connect the dots. Figure out how many people vote in local elections. Figure out how many people work for local government – the city, the county, the school districts, the hospital districts, the public transportation authorities, state agencies in your community….people who are employed by government and benefit from more government vote for more government.
I’m reading this and it’s a good post and everything, but I’m sitting here in slack-jawed amazement that anybody considers this to be news. You all *really* didn’t know this was going on?!?? Seriously? Maybe we are screwed.
Please, please please. If your are going to speak and write in public, learn the proper usage of our language. Please do not continue to promote incorrect grammar. When using a preposition, please use the objective case of a following pronoun. I.e.: “make it nearly impossible for you and me,” NOT “make it nearly impossible for you and I.” If I hear one more “between you and I” I may have to load up the twelve gauge and shoot the TV! Our schools no longer teach English as they should, much less grammar and usage. We must all be models for speaking properly. We have dumbed down our schools far too much and it is our children who are the losers!
Evil Red: Yes, this is not news.
barbara: English can has no cases, except for personal pronouns; it is social evolution getting rid of the hideousness in us’s grammar. “I” vs “me” and “who” vs “whom” is so Latin; let it go. If you like declining nouns, learn Russian.
Well said, Scott, but how sad that something so widespread and obvious could warrant, much less require, explanation.
Much of the problem could be corrected by adoption of the Fair Tax (http://www.fairtax.org), which includes repeal of the 16th Amendment as well as placing strong restrictions and citizen controls on other taxation. While not a “magic wand” solution to every problem runaway taxes and spending have brought us, the Fair Tax is our best hope to start moving the country toward recovery.
Repealing the 16th and 17th amendments might be good, but, really, never gonna happen.
I’ve worked in state and local government budgeting, finance, planning and grants for 35 years and to those of us in the business, this is very old news.
There is one change that might make a huge difference and could sneak under the radar, if you had a real small-government administration which wanted to make a difference: change government accounting from a cash basis to accrual. The sins that Scott describes are possible because the future borrowing does not show up on the books as a current cash item, so no one sees it. Go to accrual accounting and it’s all there—future borrowing, the impact of loan guarantees and backing Fannie and Freddie, the unfunded Medicare and Medicaid liabilities, all the future promises, everything. Yes, accountants and actuaries can make mistakes in estimating future expenses, and try to lowball, but it’s all in the open to talk about.
If you did just that one little thing, it would be much harder for the pols to get away with these abuses.